General Motors CEO Mary Barra has announced that the automaker will increase production in the United States to offset the financial hit caused by new tariffs imposed under the Trump administration. GM estimates the tariffs could reduce its 2025 earnings by $4 to $5 billion.
Barra emphasized that the company will “leverage assets that we have” to minimize disruptions, suggesting GM will rely heavily on its existing U.S. facilities rather than relocating or expanding operations abroad. One of the key steps includes boosting output at its Fort Wayne, Indiana plant by 50,000 units annually. Additionally, GM is working with suppliers to ensure components meet U.S.-Mexico-Canada trade agreement standards, thereby localizing more of its supply chain.
Despite the significant financial impact, GM does not expect to raise vehicle prices drastically. However, it has paused share buybacks and withdrawn its full-year financial forecast, citing uncertainty from ongoing trade policy shifts.
In response to the industry’s concerns, the Trump administration has offered partial relief, including tax rebates for domestically built vehicles and limited exemptions for certain imported parts. Barra expressed appreciation for the administration’s support and noted that GM continues to engage with federal officials to navigate the evolving trade environment.
The move underscores the growing pressure on major automakers to adapt their strategies in the face of global economic headwinds and shifting U.S. trade policy.
